Hermès Reports 11% Sales Increase in Q3

Hermès has reported an impressive 11.3% increase in third-quarter sales, reaching €3.7 billion, in stark contrast to the declining performance of competitors like LVMH and Kering, which faced significant revenue drops. The luxury brand's success is attributed to its long-term strategy focusing on scarcity and high-quality craftsmanship, resulting in solid growth across all regions, notably a 23% increase in Japan and 18% in Europe. Despite a downturn in luxury demand in China, Hermès managed to maintain revenue growth, although its watch sector experienced a 6% decline. Analysts have noted that Hermès's unique positioning and brand loyalty enable it to weather economic uncertainties better than its peers. The company remains optimistic about its medium-term revenue goals and is actively seeking expansion opportunities. This resilience has also translated into a 9% rise in its shares this year, contrasting sharply with the declines seen by other luxury brands.